SEC approves temporary framework for tokenized stock trading onchain

The SEC has introduced an innovation exemption to facilitate tokenized stock trading within the U.S. This temporary framework establishes two five-year exemptions, allowing specific platforms to operate without being classified as exchanges. These onchain venues must adhere to strict transparency requirements and trading caps. This regulatory move aims to modernize market infrastructure, potentially increasing liquidity and transparency while reducing overall costs for participants involved in the trading of tokenized US stocks on blockchain-based platforms.